Do I have to put 20% down on a construction loan?

Loan Goat's ground-up construction program lends up to 80% LTC including the lot, the build and the interest reserve, so the borrower's contribution is at least 20% of total cost plus closing costs, and the program asks for 2 previous ground-up projects. Land you already own can count toward the equity depending on how the cost is structured. The exact figure comes with the Letter of Intent.

What is Dutch interest, and does Loan Goat charge it?

Dutch interest means paying interest on the full loan amount from day one, including the rehab or construction funds that have not been released yet. Loan Goat's fix and flip and ground-up construction loans are non-Dutch: interest is calculated on the drawing balance, so you pay only for the money you have actually received. On a project with a large holdback that difference is real money every month.

What is an interest reserve?

An interest reserve is a portion of the loan set aside at closing to cover the monthly interest payments, so the project does not carry them out of pocket while there is no rent or sale yet. It is common on rehab and construction loans. Loan Goat's fix and flip and ground-up construction programs offer an interest reserve; whether it makes sense for your deal depends on the timeline and your liquidity.

What's the monthly payment on a $200,000 construction loan?

On a Loan Goat construction loan the payment is interest-only on the drawn balance, not on the full commitment, so early in the build it is a fraction of the interest on $200,000 and it grows as draws are released. The exact monthly figure depends on the rate quoted on your Letter of Intent and on the draw schedule. An interest reserve can carry the payments inside the loan.

What experience do I need for a ground-up construction loan?

Loan Goat's ground-up construction program asks for 2 previous ground-up projects, a minimum FICO of 600 and a documented budget. If you have renovated but never built, the fix and flip program is the usual first step.

CONSTRUCTION LOANS

Ground-up financing for builders who have done it before: flexible draws at every stage, interest on the drawn balance only, up to 80% LTC on 12 to 18 month terms and no prepayment penalty when the finished project sells or refinances.

80% LTC UP TO
12 to 18 months TERMS

GROUND-UP CONSTRUCTION FINANCING

Terms: 12 to 18 months
LTC Up To: 80% of lot, build and interest reserve
Loan Amounts: Above $4,000,000 by special approval

REQUIREMENTS

Minimum FICO:: 600
Property Type:: SFR, Condo/Townhome, 2-4 Units
Documentation:: Application, SREO, Proof of Funds
Experience:: 2 Ground-Up Projects

BENEFITS

Flexible draws throughout construction stages
Quick close
No prepayment penalties
Minimal documentation required
Non-Dutch: interest calculated on drawing balance
Interest reserve available

HARD MONEY CONSTRUCTION LOANS

Building from the ground up needs a lender that funds the stages as they happen. The ground-up construction loan goes up to 80% LTC including the lot, the build and the interest reserve, on terms of 12 to 18 months, on SFR, condo and townhome and 2-4 unit projects, with special approval above $4,000,000. The program asks for two previous ground-up projects and a minimum FICO of 600, and interest is non-Dutch: you pay only on what has been released.

INSIDE CONSTRUCTION LOANS

Each structure has its own page with the verbatim terms card, the criteria, how it differs from the others here, and the questions borrowers ask about it.

GROUND-UP CONSTRUCTION FINANCING

Build from nothing, with up to 80% LTC including the lot, the build and the interest reserve, on terms of 12 to 18 months, and special approval for loans above $4,000,000. Draws release through every stage of construction.

LTC 80% of lot, build and interest reserve · 12 TO 18 MONTHS · ABOVE $4,000,000 BY SPECIAL APPROVAL

GROUND-UP CONSTRUCTION FINANCING: CRITERIA

The requirements and benefits as published on the live terms card, word for word.

Requirements
Minimum FICO	600
Property Type	SFR, Condo/Townhome, 2-4 Units
Documentation	Application, SREO, Proof of Funds
Experience	2 Ground-Up Projects

Benefits
01	Flexible draws throughout construction stages
02	Quick close
03	No prepayment penalties
04	Minimal documentation required
05	Non-Dutch: interest calculated on drawing balance
06	Interest reserve available

Read the full ground-up construction financing page.

Steel frame and tower crane on a construction site at dusk

WHO IT IS FOR

Builders and developers with a track record, on residential projects that need staged funding from lot to completion.

SFR, condo and townhome, 2-4 units
Experience: 2 ground-up projects; minimum FICO 600
Documentation: application, SREO, proof of funds
Flexible draws throughout construction stages; interest reserve available

Glass and timber pavilion terrace looking over hills at golden hour

OUR PROCESS

HOW IT CLOSES

Four steps to funding, then a draw schedule tied to the stages of the build, verified as each one is reached.

Complete your application
Submit required documentation
Sign your Letter of Intent
We process and close your loan in 5-7 days

Ground-up financing with flexible draws through every stage of the build.

LTC 80% · 12-18 MO PUBLISHED TERMS

CONSTRUCTION LOAN QUESTIONS

LOAN REQUEST (619) 617-2797

CONSTRUCTION LOANS

GROUND-UP CONSTRUCTION FINANCING

HARD MONEY CONSTRUCTION LOANS

INSIDE CONSTRUCTION LOANS

GROUND-UP CONSTRUCTION FINANCING

GROUND-UP CONSTRUCTION FINANCING: CRITERIA

WHO IT IS FOR

HOW IT CLOSES

CONSTRUCTION LOAN QUESTIONS

01 Do I have to put 20% down on a construction loan?

02 How do the construction holdback and draws work?

03 What is Dutch interest, and does Loan Goat charge it?

04 What is an interest reserve?

05 What's the monthly payment on a $200,000 construction loan?

06 What experience do I need for a ground-up construction loan?

RELATED PROGRAMS

LOAN SCENARIOS

PROPERTY TYPES

READ AND APPLY

WHERE WE LEND IT

SUBMIT A LOAN REQUEST